Broker comment via Research-Tree:
Interims confirm return to profit growth
Interims results show a strong improvement in margins and cash generation as a result of self-help measures and strong execution from management taking effect. The outlook remains positive, with H2 looking well underpinned by orders already received in the Point-of-Care division and further growth from the newly commissioned Life Sciences manufacturing plant in South Bend. We make no changes to our forecasts at this stage and flag the mid-teens EBITDA growth outlook and attractive earnings multiples as being supportive of the investment case at currently share price levels. We reiterate our Buy recommendation and TP of 39p. |
A positive first-half performance overall, with a stronger second-half to follow, and where a few more contract wins could make a material difference. |
 Most will no doubt have either read or at least be aware of the news flow regarding Lord Darzi’s recent diagnoses of the challenges facing the NHS.
In my view, that diagnosis applies beyond the UK in shifting more care from hospitals to communities, and to be much bolder in moving from sickness to prevention, which would include robust diagnostics in-the-field and at home, point-of-care diagnostics in pharmacists, and doctors offices.
I know some are too busy, or maybe just not that interested to listen to a 20 minute talk. But if you do nothing else, listen to the last minute (from 19m 38sec) -
Apr 12, 2024
Lord Darzi calls for a coordinated, decentralized approach to point of care diagnostics that considers scaled access and equity across whole populations -
The recognition of what role diagnostics play may be entering a new era of appreciation and deployment, in turn creating even greater opportunity.
With that in mind, investors need to appreciate the role that EKF's Life Sciences can play, not only in the production of premium OEM products and materials for third-party clinical diagnostic companies (not to mention pharmaceutical and industrial applications), but also in the production of diagnostic products that enable EKF's current diagnostic products, and perhaps under-appreciated, the potential from EKF's future diagnostic tests and devices.
That aside, it will be interesting to see what insights we get on Tuesday in terms of the progress and performance to date from the half-year results, and the presentation the day after. |
I'm sure this will be of interest to current and potential shareholders / investors.Investor PresentationJulian Baines, Executive Chair, and Stephen Young, Chief Financial Officer, will be hosting a live online presentation relating to the interim results via the Investor Meet Company (IMC) platform at 4.30pm (BST) on Wednesday 18 September 2024. The presentation is open to all existing and potential investors. Investors can sign up to IMC for free and register for the presentation here: https://www.investormeetcompany.com/ekf-diagnostics-holdings-plc/register-investor |
I note that EKF have updated their website with a new look and layout. |
Wan
thanks for post 122
nice & clear & easy to understand, for busy clods like me.
some good growth there. |
I have a view that once those fermentation tanks are booked out the trigger for a major profit / eps would have been pulled, along with the cost reduction efforts being made.Steadily improving margin, low margin items removed.Seems the pieces of the jigsaw are starting to move to final phase. It has felt like a long haul but I have a price target of 45p which I think will be beaten but that's a year away.As my crystal ball doesn't work, please dyor and aimho. |
Keeping things simple then...
What we know so far:
Half-year 2023-
Net cash generated from operations of GBP2.5m
Life Sciences: excluding COVID-revenues up 14.5% to £7.5m
Trading Update for the six months ended 30 June 2024 -
Cash generation in the first half of the year was also strong with £5.1m generated.
Life Sciences division's fermentation business performed particularly well in the first half, recording sales growth of 41% year-on-year (according to my maths that's circa £10.5m).
In short, EKF is making significant progress, which is expected to be sustained into the second half which is generally a stronger period. |
As Warren Buffett says "you need to understand what you invest in." As I say "if you don't you are a turnip." EPS etc go up and down, a growing product base supports lots of sins. |
Question is - how has wan's complexity worked for you? That's right... |
Sadly, truth is often complex. Me.
hxxps://www.quora.com/Where-did-da-Vinci-originally-write-%E2%80%9CSimplicity-is-the-ultimate-sophistication%E2%80%9D |
True - hardest thing is for folks to cut through nonsense and get straight to the bottom line. Very very few do that. Simplicity is the ultimate sophistication. Leonardo da Vinci |
Enzymes break down starch. BHB is a chemical the body produces when not enough carbs or sugars have been eaten. Sure Wan will correct me on this but I’m glad someone has a handle on this . Chris Mills mentioned that clients for enzymes have been slow to take up, but they are finding or looking of ways to use enzymes themself. The rest of the business, diagnostics etc is doing very nicely thank you. No debt and generating increasing amounts of cash. As I mentioned before there appears to be a persistent seller dragging this back all the time. Possibly a forced seller or new fund manager with ‘new ideas’ on how to waste their clients money. In the meantime many analysts feel this is discounted by 30 per cent with SFA priced o the enzyme side even though a great deal has been invested in it. When it happens will be a massive shift I hope and expect |
Don't worry about it - some of us understand and appreciate them. On the other hand I do think most of us could happily live without your pointless carping. |
B-HB
GLP-1
T1DM
as I have posted before
anyone posting loads of detailed technical mumbo jumbo, it is surely a complete waste of time for 80-99% of readers who surely have no idea the possible benefit, or not, these things might have to the EKF share price.
and the author seems to generally avoid ever indicating what impact on the eps or the share price these things like B-HB might have
& that is what most of us are interested in.
so, Wan's high tech posts are probably mostly all just water passing by under the bridge, unseen, unnoticed.
imo anyway. |
Wan - you are phenomenal at debating yourself pal. |
The other aspect that has been piquing my interest is B-HB use in pharmacological intervention, i.e. the use of medication to treat or prevent an illness or disease (including in veterinary use), for which evidence is mounting and again providing food for thought given EKF has the fermentation capacity to produce significantly more B-HB. |
Edit to the above post - Corrected link and added "In other words, GLP-1's may create a notable increased demand for both monitoring and diagnosis via B-HB" |
Recall that EKF produces and sells a vital tool for detecting ketones and monitoring patient resolution in cases of diabetic ketoacidosis. Its quantitative nature enables precise monitoring of ketosis trends and clinical status in patients, extending its utility beyond DKA to conditions such as alcoholism, glycogen storage disease, and more.
B-HB is a better test for ketosis and ketoacidosis than nitroprusside methods for a number of reasons:
Beta-Hydroxybutyrate demonstrates excellent stability, making it the most reliable indicator of clinically relevant ketosis and ketoacidosis.
During ketosis, Beta-Hydroxybutyrate levels increase more than levels of acetone and acetoacetate, clearly indicating the patient's trend in metabolic status.
Quantitative, objective Beta-Hydroxybutyrate results provide a better tool for differentiating metabolic acidosis and monitoring therapy.
GLP-1 blockbuster drugs continue to provide food for thought given certain side-effects and adverse outcomes:
ORIGINAL RESEARCH article
Front. Pharmacol., 08 July 2024
In our study, AEs submitted by multiple GLP-1 RAs regarding ketoacidosis were disproportionate and nearly all AEs had a severe outcome when the effect of the combination was not considered (Supplementary Table S3). In a case report of ketoacidosis resulting from an injection of Wegovy 1.7 mg for the treatment of type 1 diabetes mellitus (T1DM), the effects of appetite suppression and inhibition of gluconeogenesis and glycogenolysis produced by GLP-1 RAs contributed to the reduction of the patient’s insulin push and induced the development of diabetic keto acidosis. Moreover, this could become more prevalent with the widespread use of GLP-1 RAs (Widhalm and Pulido, 2023). A meta-analysis of GLP-1 RAs as adjuvant therapy in patients with T1DM also observed that liraglutide was associated with higher odds of ketosis (OR 1.8; 95% CI, 1.1–2.8) (Park et al., 2023). Coupled with the slightly disproportionate reporting of diabetic ketoacidosis associated with GLP-1 RAs when they occur without combination with insulin (Yang et al., 2022), there is a need to be concerned about ketoacidosis as a potential adverse effect when using GLP-1 RAs.
Full research -
In other words, GLP-1's may create a notable increased demand for both monitoring and diagnosis via B-HB. |
Relentless even larger sells yesterday. Holding 27p. This morning 2 buys of 3 shares at 28.9p. Total mystery how the market works. Still no RNS about the sells. Could it be lion trust. They have been under the cosh recently, possibly a forced seller? |
Who is this seller? Must be an rns out soon surely. The actual spread is pretty tight. The market is accepting sells @ 27p still, but dropped the buy price to 27.7p, which is my buy price. Guess they could get cheaper, but looks like there are more buyers circling now. |
Update to above post, added- 'nor ThermoFisher' |
Very persistent seller carrying on where they left off yesterday dumping stock at 27p. Was hoping they had cleared. On the other an opportune moment to top up. interesting link about Primestore MTM Wan. |
I note the following:
PrimeStore MTM is validated with the Thermo Fisher molecular work flow and inactivates Mpox in 2 minutes or less (UKHSA). PrimeStore MTM is available through the Thermo Fisher Microbiology Division -
Jeff Fischer
Co-Founder, President Longhorn Vaccines and Diagnostics
11 hours ago
Stuart Knight
Global Health Executive,
ThermoFisher
Thermo Fisher’s Global Health Equity team along with local colleagues and partners are positioned to assist government ministries, public health labs, NGOs and other organzations involved in the Mpox outbreak response across affected African regions and equally outside of Africa as new imported cases of this deadly disease emerge.
Please reach out directly to access the complete Thermo Fisher molecular work flow, purpose built to detect Mpox, including the more deadly and highly transmissible Clade 1b Mpox varient. Our global and regional logistic mechanisms are at the ready to rapidly operationalize these solutions where they are needed most. |
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